Mackey is a businessman first. He realized early on that by selling so called organic/good stuff IE its better for you (this is the marketing angle, Facts are irrelevant) HE could double/triple his sales per SQ Ft of floor space, This is the key metric in the grocery store business. There is no limits to what can be sold in terms of items But there is a finite amount of physical space in a grocery store and they measure their fiscal performance on $ sold per SQ FT. So Mackey was smart enough to know that be going down this high price premium product that they all claim to be superior he could improve the financial performance of his company. that is why the organic's natural foods are pushed at the grocery store level. If I can take my sales from $500/sq. ft. to $3000/SQ Ft and I make my same 2% of gross I will vastly improve my bottom line. IE if your customer wants a purple cow sell them the purple cow just get paid more for it. He is did not go this route to provide healthier safer foods. He did it to make more money than a conventional grocery store.
So John Mackey's take on why poor people don't shop at Whole Foods is that they simply do not want healthy food. I visited Whole Foods for the first time last week and spent $150 on 3 bags of groceries. It sure would have been nice to hear Moynihan follow up on that and ask if Mackey truly thinks Americans making minimum wage, or thereabouts, can afford to spend that kind of money on food. But no - no pushback here. Jesus, what a pair of well-insulated assholes.
I’m sorry what? Whole Foods didn’t revolutionize anything. They copied the concept of an expensive boutique grocery store and took it nationwide. We’ve had expensive local food co-ops in the pacific northwest, like whole foods, my entire life.
An important question that was completely missed and essential to the discussion when talking about food deserts, fresh food and eating habits: food prices/costs. A topic that needed to be addressed. I would have loved to hear his take on food choices given low income family budgets.
Indeed. People buy what they want and can afford. Another word missing from the conversation is marketing. What people want is shaped not only by human nature. Preferences for harmful products or products consumed in quantities that are harmful, like junk food, tobacco products, and supersized sodas, are influenced by advertising, product placement, and norms are shaped by marketing, including social media.
Enjoyed the interview, Michael. Refreshing to hear from an entrepreneur who successfully blends the needs of the consumer and capitalism. I added his book to my reading list. Well worth the listen.
I liked shopping at Whole Foods….until Amazon bought them. I felt the produce quality took a little hit and there seem to be more knickknacks and toys and stuff. Then we had the pandemic and Whole Foods, at least in my town, became this warehouse with lots of little worker beesbees, running around with shopping carts filling to go orders. I only go there now if I want really special cake.
Did anyone catch the books he recommended? I think one was by Steven Pinker but maybe I heard incorrectly
Mackey is a businessman first. He realized early on that by selling so called organic/good stuff IE its better for you (this is the marketing angle, Facts are irrelevant) HE could double/triple his sales per SQ Ft of floor space, This is the key metric in the grocery store business. There is no limits to what can be sold in terms of items But there is a finite amount of physical space in a grocery store and they measure their fiscal performance on $ sold per SQ FT. So Mackey was smart enough to know that be going down this high price premium product that they all claim to be superior he could improve the financial performance of his company. that is why the organic's natural foods are pushed at the grocery store level. If I can take my sales from $500/sq. ft. to $3000/SQ Ft and I make my same 2% of gross I will vastly improve my bottom line. IE if your customer wants a purple cow sell them the purple cow just get paid more for it. He is did not go this route to provide healthier safer foods. He did it to make more money than a conventional grocery store.
So John Mackey's take on why poor people don't shop at Whole Foods is that they simply do not want healthy food. I visited Whole Foods for the first time last week and spent $150 on 3 bags of groceries. It sure would have been nice to hear Moynihan follow up on that and ask if Mackey truly thinks Americans making minimum wage, or thereabouts, can afford to spend that kind of money on food. But no - no pushback here. Jesus, what a pair of well-insulated assholes.
I’m sorry what? Whole Foods didn’t revolutionize anything. They copied the concept of an expensive boutique grocery store and took it nationwide. We’ve had expensive local food co-ops in the pacific northwest, like whole foods, my entire life.
Honestly!
Boooooorrrring
An important question that was completely missed and essential to the discussion when talking about food deserts, fresh food and eating habits: food prices/costs. A topic that needed to be addressed. I would have loved to hear his take on food choices given low income family budgets.
Indeed. People buy what they want and can afford. Another word missing from the conversation is marketing. What people want is shaped not only by human nature. Preferences for harmful products or products consumed in quantities that are harmful, like junk food, tobacco products, and supersized sodas, are influenced by advertising, product placement, and norms are shaped by marketing, including social media.
Interesting interview . At little bit of Econ 101 here , some better questions are : How did you handle the risk of starting a business , besides of the idea of fun ? What is the new business he is starting ? Sorry but a much better interview is here : https://www.entrepreneur.com/leadership/john-mackey-talks-new-startup-and-the-2-types-of/456396
Enjoyed the interview, Michael. Refreshing to hear from an entrepreneur who successfully blends the needs of the consumer and capitalism. I added his book to my reading list. Well worth the listen.
I liked shopping at Whole Foods….until Amazon bought them. I felt the produce quality took a little hit and there seem to be more knickknacks and toys and stuff. Then we had the pandemic and Whole Foods, at least in my town, became this warehouse with lots of little worker beesbees, running around with shopping carts filling to go orders. I only go there now if I want really special cake.
This looks great! Can't wait to listen to it!
"How did we get here?"
Well, let me tell you, Bari...
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